Executive Summary

Enterprise Investment Scheme (EIS) investments are traditionally seen as being single company investments. The Lacomp British Enterprise Funds are different: they invest in a minimum of four companies, to some extent spreading the risk in what must still be treated as a higher risk type of investment.

Although EIS tax advantages are considerable, the most important aspect of any investment is the potential for capital growth. Our Funds always seek to invest pre-IPO, i.e. prior to the uplift in valuation that is almost invariably seen on admission to AIM. Lacomp has assembled a team of acknowledged experts (the Investment Advisory Panel) with relevant experience in the field of smaller company finance to help source, evaluate and monitor investee companies.

EIS investments enjoy a number of tax breaks:

EIS Tax Relief (i.e. Income Tax relief) of 20% in the tax year of the Fund's Closing Date;
Unlimited Capital Gains Deferral Relief on gains crystallised 36 months before or 12 months after the Fund has invested in EIS qualifying companies;
Capital Gains Exemption;
Capital Gains Taper Relief;
Loss Relief;
IHT Relief under the Business Property Relief rules

Finally, EIS investments can be extremely useful for Trustees needing to 'unlock' the sometimes significant capital gains that trust assets can accumulate over a number of years.

All Lacomp British Enterprise EIS Funds are Approved Investment Funds (approved by the Inland Revenue), as opposed to Unapproved Investment Funds. The difference is significant for tax planning: an Approved Fund must invest 90% of the monies raised within 12 months of the Fund's Closing Date, whereas an Unapproved Fund has 3 years to do so. This can be critical when it comes to deferring Capital Gains Tax (CGT) or mitigating Inheritance Tax (IHT).

The minimum investment is set at a low £3,000, making this investment available to almost everyone.

The Lacomp British Enterprise EIS Funds really are EIS investments with a difference.